DUE to delayed remittance of net domestic crude sales proceeds to the federation account, the Nigerian National Petroleum Commission (NNPC) incurred an opportunity cost of N11 billion in 2019. In a breakdown, the expected payment cycle is put at 90 days but the actual payment cycle ranged between 104 to 117 days. For instance, the bill of lading date was put at October 31, 2018, while the expected payment date January 29, 2019. It stated that the Corporation has since transitioned to electronic remittance effective March 2020 liftings, thereby reducing the payment cycle. Also from the sum, $9 billion (N2.762 trillion) was transferred to state governments,$5.382 billion (N1.649 trillion) to local governments, while $1.173 billion (N359.542 billion) accounted for the cost of collection.

Source: Nigerian Tribune July 05, 2021 07:52 UTC